Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Application to Local Finance Board for approval
of bond ordinance
Name of Project(s): Qualified Refunding Bonds
Amount to be Financed: $31,000,000.00
Funding Source: Bonds
Local Finance Board meeting date(s): December 11, 2024
Project Information:
(Description/ Project No./ Amount Appropriated/Ordinance No.)
RESOLUTION OF THE CITY OF NEWARK, IN THE COUNTY OF ESSEX, STATE OF NEW JERSEY AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE LOCAL FINANCE BOARD (I) PURSUANT TO N.J.S.A. §40A:2-51 AND N.J.S.A. §40A:2-55 (AND N.J.S.A. §18A:7A-46.3 AND N.J.S.A. §18A:7A-46.4 IN THE CASE OF THE SCHOOL BONDS) IN CONNECTION WITH THE ISSUANCE OF NOT TO EXCEED $31,000,000.00 AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION REFUNDING BONDS, CONSISTING OF (A) NOT TO EXCEED $29,000,000.00 GENERAL IMPROVEMENT REFUNDING BONDS, SERIES 2025A AND (B) NOT TO EXCEED $2,000,000.00 SCHOOL REFUNDING BONDS, SERIES 2025B OF THE CITY, (II) FOR THE APPROVAL OF A REFUNDING BOND ORDINANCE OF THE CITY PURSUANT TO THE PROVISIONS OF THE MUNICIPAL QUALIFIED BOND ACT, N.J.S.A. 40A:3-1 ET SEQ. (THE “ACT”), AND (III) FOR THE APPROVAL OF THE ISSUANCE OF REFUNDING BONDS AS QUALIFIED BONDS UNDER THE PROVISIONS OF THE ACT
Additional Information:
body
WHEREAS, THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, IN THE COUNTY OF ESSEX, STATE OF NEW JERSEY (the “City”) desires to make application to the Local Finance Board, Division of Local Government Services in the New Jersey Department of Community Affairs (the “Local Finance Board”), (i) pursuant to N.J.S.A. 40A:2-51 and N.J.S.A. 40A:2-55 of the Local Bond Law of the State of New Jersey, N.J.S.A. 40A:2-1 et seq. (the “Local Bond Law”), for its approval of, and endorsement of its consent on, a refunding bond ordinance (the “Refunding Bond Ordinance”) authorizing the refunding of its $56,673,000.00 General Obligation Bonds, dated June 23, 2015, consisting of (a) $51,553,000.00 Qualified General Improvement Bonds, Series 2015A (qualified under the Municipal Qualified Bond Act) (the “2015A Bonds”) and (b) $5,120,000.00 Qualified School Bonds, Series 2015B (qualified under the Municipal Qualified Bond Act; additionally secured under the New Jersey School Bond Reserve Act) (the “2015B Bonds” and together with the 2015A Bonds, the “Original Bonds”), of which (A) $27,678,000.00 outstanding principal portion of the 2015A Bonds maturing on July 15 in the years 2026 through 2029, inclusive (collectively, the “2015A Refunded Bonds”) and (B) $1,650,000.00 outstanding principal portion of the 2015B Bonds maturing on July 15, in the years 2026 through 2029, inclusive (collectively, the “2015B Refunded Bonds” and together with the 2015A Refunded Bonds, the “Refunded Bonds”) are subject to redemption prior to their respective maturity dates, on or after July 15, 2025; (ii) for the approval of the final adoption of the Refunding Bond Ordinance pursuant to the provisions of the Municipal Qualified Bond Act, N.J.S.A. 40A:3-1 et seq. (the “Act”), specifically N.J.S.A. 40A:3-4(b); (iii) for the approval of maturity schedules of the two (2) series of refunding bonds related thereto, pursuant to the Act, and (iv) for the approval to issue General Obligation Refunding Bonds in an aggregate principal amount not to exceed $31,000,000.00, consisting of not to exceed $29,000,000.00 General Improvement Refunding Bonds, Series 2025A (the “2025A Refunding Bonds”) and not to exceed $2,000,000.00 School Refunding Bonds, Series 2025B (the “2025B Refunding Bonds” and together with the 2025A Refunding Bonds, the “Refunding Bonds”) as qualified bonds (the “Qualified Bonds”) pursuant to the provisions of the Act, and in the case of the 2025B Refunding Bonds, also pursuant to the provisions of Title 18A, Education, of the New Jersey Statutes (the “School Law”), including, specifically N.J.S.A. 18A:7A-46.3 and N.J.S.A. 18A:7A-46.4; and
WHEREAS, the City believes with respect to the adoption of the Refunding Bond Ordinance and the issuance of Qualified Bonds that:
(a) it is in the public interest to accomplish such refunding authorized by the Refunding Bond Ordinance;
(b) said refunding authorized by the Refunding Bond Ordinance is for the health, wealth, convenience or betterment of the inhabitants of the City;
(c) the amounts to be expended for said refunding authorized by the Refunding Bond Ordinance are not unreasonable or exorbitant; and
(d) the refunding authorized by the Refunding Bond Ordinance and the issuance of the Qualified Bonds are an efficient and feasible means of providing services for the needs of the inhabitants of the City and will not create an undue financial burden to be placed upon the City.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, IN THE COUNTY OF ESSEX, STATE OF NEW JERSEY, THAT:
1. The application (the “Application”) to the Local Finance Board, attached hereto as Exhibit A, is hereby approved, and Wilentz, Goldman & Spitzer, P.A., Bond Counsel to the City (“Bond Counsel”), Samuel Klein and Company, LLP, Certified Public Accountants, the Auditor to the City (the “Auditor”), and NW Financial Group, LLC, the Municipal Advisor to the City (the “Municipal Advisor”), along with other officials and representatives of the City, are hereby authorized and directed to prepare and submit such Application to the Local Finance Board and to represent the City in such matters pertaining thereto.
2. The City Clerk is hereby directed to prepare and file certified copies of this resolution and the Refunding Bond Ordinance after passage upon first reading with the Local Finance Board for its approval and consent as part of such Application.
3. The Local Finance Board is hereby respectfully requested to consider such Application and to record its approval and recommendations as provided by the applicable provisions of the Local Bond Law, specifically N.J.S.A. 40A:2-51 and 40A:2-55, the School Law, specifically N.J.S.A. §18A:7A-46.3 and N.J.S.A. §18A:7A-46.4 in the case of the 2025B Bonds, and the Act, specifically N.J.S.A. 40A:3-4 and its consent to be endorsed upon the Refunding Bond Ordinance.
4. The preparation of the Application by Bond Counsel, the Auditor and the Municipal Advisor, in consultation with the Director of Finance and Chief Financial Officer or the Assistant Director of Finance and Chief Financial Officer of the City, is hereby ratified, approved, and confirmed, nunc pro tunc, and its submission to the Local Finance Board is hereby authorized.
5. This resolution shall take effect immediately.
STATEMENT
Resolution making an application to the Local Finance Board (LFB) for the issuance of not to exceed $31,000,000.00 aggregate principal amount of General Obligation Refunding Bonds.